fidelity bond


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Fidelity bond

Blanket Fidelity Bond

A bond or insurance policy covering a company in the event it loses money as the result of employee theft or fraud. It is important to note that blanket fidelity bonds generally only cover situations in which an employee commits fraud for personal gain; it does not cover situations in which the employee, without support or knowledge of management, falsifies trading so that it makes the company appear healthier than it is. The Federal Bonding Program, run by the Department of Labor, insures or guarantees the insurance of ex-offenders whose employment adds significant risk of theft or fraud. The SEC requires brokerages to be covered by a blanket fidelity bond. See also: Bonding, Operational Risk.

fidelity bond

fidelity bond

A special insurance policy that covers losses caused by dishonest employees. Property management companies and others with employees who handle money belonging to clients should generally obtain fidelity bonds.Also called a surety bond.

References in periodicals archive ?
The firm said that it has acquired Broker of Record rights to certain fiduciary liability policies and fidelity bonds previously brokered by David Walker Insurance Services (DWIS) in San Francisco.
One of the nation's premier 1031 specialists and Qualified Intermediaries, Madison Exchange adheres to the most rigorous and comprehensive standards of fiduciary security, with a $10 million fidelity bond, a $10 million E&O policy, and guaranteed FDIC-backed protection for client funds.
337 billion in premiums for fidelity bond coverage.
While fidelity bond coverage can mitigate financial losses suffered due to fraud, organizations must be aware that most policies require the nonprofit to establish and maintain sound accounting policies and procedures, and may refuse to pay indemnities if this requirement is not met.
ERISA Fidelity Bond -- ERISA requires all individuals who handle plan assets/funds to be bonded to the lesser amount of 10 percent of the plan assets or $500,000.
Fidelity bond amounts and persons; administrator and confidential employee contracts.
The latter would be covered under a fidelity bond, but the former is questionable, at best.
FDIC, as successor to the RTC, then appealed the district court's order, and the 10th Circuit certified the following question to the Supreme Court of Kansas: "Does the failure by an insured to provide proof of loss within the time limit provided by a fidelity bond of the type involved here justify denial of coverage under the bond without the insurer showing that it has been substantially prejudiced by the untimely proof of loss?
HOUSTON, March 18 /PRNewswire/ -- FirstCity Liquidating Trust (OTC Bulletin Board: FCFCL FCFCZ) announced today that the Trust has settled its insurance claim with Fidelity Bond carriers.
a mutual benefit corporation that provides fidelity bond protection for independent escrow companies, covered the loss suffered by the buyers and sellers when Country Oaks collapsed, district attorney's officials said.
The expense loading for surety and fidelity bonds is higher than average for the property-liability insurance industry overall and accounts for a higher proportion of the surety and fidelity bond premium than expected losses.
Another fidelity bond legal dispute between the NCUA and an insurance company revealed that a former manager and assistant manager were running a check-kiting scheme that led to a loss of nearly $700,000 and contributed to the involuntary liquidation of an Indiana credit union.